Workers sacked after Deliveroo goes into voluntary administration

Thousands of delivery drivers lost their job overnight after a popular food app service suddenly closed in a warning to the gig economy.

Thousands of food delivery riders woke to the news they’d lost their jobs, with many more predicted to also get the sack following Deliveroo’s sudden closure overnight.

The food delivery company went into voluntary administration in Australia, citing poor profitability in a highly competitive market as the reason behind its collapse.

Transport Matters Party leader Rod Barton said the gig-economy businesses had been given “free rein” by the Victorian government.

“Insecure work has become the new norm and workers are forced to fight for rights they won decades ago,” he said.

“It feels like we are going backwards.

“These riders have nothing to fall back on.”

Food delivery service Deliveroo went into voluntary administration in Australia on Wednesday. Picture: NCA NewsWire / David Swift

Mr Barton said there needed to be immediate reform to the gig economy, otherwise more companies would leave the market.

“There is no safety net in the gig economy,” he said.

“These companies will do whatever it takes to turn a profit.

“Only government regulation can protect workers from exploitation and harassment.

“Reform can’t come quick enough.”

Transport Matters Party leader Rod Barton wants to see immediate reform to ensure further gig economy businesses don’t fold. Picture: NCA NewsWire / Paul Jeffers

Voluntary administrators KordaMentha told riders on Wednesday they no longer had a job.

“The company ceased trading immediately and accordingly, the company will no longer be accepting orders or facilitating deliveries in Australia,” KordaMentha said in document issued to stakeholders.

“The administrators will contact you shortly in relation to the impact of the administration and provide further details regarding how to submit a proof of debt form for amounts owed.”

Another document outlines how riders are considered to be contractors rather than employees, disqualifying them from entitlements and considering them to be “unsecured creditors”.

The Transport Workers Union has sought an “urgent meeting” with the administrators, stressing that riders are “devastated over the sudden loss of their jobs”.

“This will be a shock to the thousands of food delivery riders who rely on Deliveroo for income,” TWU national secretary Michael Kaine said on Wednesday.

“The TWU has sought urgent consultation with administrators on what entitlements might be clawed back for food delivery riders who stand to lose their jobs in the blink of an eye.”

Originally published as Workers sacked after Deliveroo goes into voluntary administration